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When Mr. Ding L. Berry, president of Berry Inc., first saw the segmented income statement below, he flew into his usual rage. When will we
When Mr. Ding L. Berry, president of Berry Inc., first saw the segmented income statement below, he flew into his usual rage. "When will we ever start showing a real profit? m immediate steps to eliminate those two unprofitable lines! starting Product Lines Total Sales Variable Expenses Contribution Margin s 250,000 100,000 75,00075,000 35,00047.000 119,000 1000 63,0000,000 28,000 98,000 31,000 3700030,000 32,90018,000 1001 Traceable Fixed expenses Common expenses allocated 4,400 10,50 - Operating Income/Loss 14,0007,500)(6,400) These traceable expenses could be eliminated if the product lines to which they are traced were discontinued. Required: Recommend which segments, if any, should be eliminated. Prepare a report in good form to support your
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